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European Business Activity Rises at Fastest Pace in 2016

Business activity across the 19 eurozone economies grew in October at its fastest pace so far this year, shrugging off any major concerns about Britain’s “Brexit” vote, a survey showed Monday.

The purchasing managers’ index, a survey of activity among 5,000 companies in the services and manufacturing sectors, rose to 53.7 points from 52.6 the month before.

The index, compiled by research firm IHS Markit, is on a 100-point scale, with 50 separating growth from contraction.

The increase was led by stronger momentum in Germany, whereas France saw a slowdown.

Overall, new orders and hiring intentions rose. Work backlogs accumulated at the fastest pace in five years — a positive sign for the economy that suggests companies are enjoying good demand.

The results suggest the eurozone is holding up in the face of uncertainties including Britain’s vote to leave the European Union and a slowdown in global trade.

Chris Williamson, chief business economist at IHS Markit, said that the results are consistent with the eurozone economy growing at a quarterly rate of 0.4 percent in the final three months of the year. That would be a pick-up from the 0.3 percent growth in the second quarter.

via Mainichi [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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